Unraveling Complexities: A Praktical Guide on Calculating Emissions from Scope 3's Most Challengeable Categories
In the pursuit of reducing carbon emissions, understanding Scope 3 emissions, which encompass upstream and downstream activities of a company, is crucial. This article outlines the methods and techniques for calculating Scope 3 emissions in three key categories: Purchased Goods and Services (Category 1), Use of Sold Products (Category 11), and End-of-Life Treatment of Sold Products (Category 12).
Category 1: Purchased Goods and Services
Calculating emissions for Category 1 involves a range of methods, from using generic spend-based emission factors to more precise supplier-specific data. The hybrid method, which combines supplier-specific data with spend-based or life cycle assessment (LCA) data, is recommended for improved accuracy. Directly engaging with suppliers to collect primary emission data can replace industry averages and enhance precision. Using activity data such as quantities purchased, rather than just spend values, provides more accurate footprint estimates.
Category 11: Use of Sold Products
For Category 11, emissions are calculated by estimating product usage and the emissions intensity associated with that usage. Industry-specific guidance, like the Semiconductor Climate Consortium (SCC) detailed guidance for Category 11 emissions in the semiconductor sector, is available to reflect unique product use patterns. Calculation may involve models or estimates of product lifetime and usage intensity, combined with emission factors for energy or other inputs used by the product during use.
Category 12: End-of-Life Treatment of Sold Products
Emissions in Category 12 come from waste treatment processes such as landfilling, incineration, recycling, or composting at the product’s end-of-life. Calculation involves estimating the fraction of products treated by each waste method and applying emission factors for those methods, often sourced from LCA databases or waste emission factor publications. More precise data can be obtained by tracking actual disposal routes through consumer surveys or industry waste management data.
Techniques to Increase Precision Across These Categories:
- Supplier engagement to collect supplier-specific activity and emission data.
- Use of hybrid calculation methods combining primary data with LCA and spend-based data.
- Applying industry-specific guidance and protocols to account for sectoral nuances.
- Leveraging advances in data collection technologies to collect detailed activity data.
- Continuous updating of emission factors with the latest LCA data and regional variations.
- Prioritising data quality improvement for the most emission-intensive and relevant suppliers and product categories.
This multi-tiered approach balances practicality and accuracy, recognising that precise Scope 3 measurement is resource-intensive but crucial for effective emissions reduction strategies. By improving Scope 3 inventories, companies can boost reporting credibility, identify opportunities for cooperation and innovation throughout the value chain, and propel significant climate action.
- In the process of calculating Scope 3 emissions, the hybrid method that combines supplier-specific data with spend-based or life cycle assessment (LCA) data is advised for enhanced accuracy.
- To accurately estimate footprint in Category 1, it's better to use activity data such as quantities purchased instead of just spend values.
- For Category 11, industry-specific guidance, like the Semiconductor Climate Consortium (SCC) detailed guidance, is available to reflect unique product use patterns.
- Emission calculations in Category 12 involve estimating the fraction of products treated by each waste method and applying emission factors sourced from LCA databases or waste emission factor publications.
- To increase precision across these categories, companies should engage with suppliers to collect supplier-specific activity and emission data.
- The use of hybrid calculation methods, combining primary data with LCA and spend-based data, is a technique to increase precision.
- Enhanced precision can be achieved by applying industry-specific guidance and protocols to account for sectoral nuances in Scope 3 calculations.
- In the pursuit of effective climate action, continuous updating of emission factors with the latest LCA data and regional variations is essential for improving Scope 3 inventories.
